Sales and profit at MNCs is catching up with royalty payouts, says IiAs

Sales and profit at multinational companies (MNCs) is catching up with royalty payouts, said proxy advisory firm IiAs. In the last few years, royalty payments, as a percentage of profits, remained high despite tepid growth in earnings.

In FY17, 31 MNCs paid about Rs 77.8 billion, which accounted for almost 20 per cent of their pre-royalty pre-tax profits.

“The most tangible measurement of this benefit is that the MNCs outperform other companies in their relevant industry indices — in revenues, profits, or both. While this benefit was not visible in the past, the pace of growth in pre-royalty pre-tax profits is now